With the federal government slashing tax rates, some mining companies are asking taxpayers for a little more help to make the jump to a more competitive industry.
According to a recent report from the Institute for Local Self-Reliance, mining companies in the U.S. have paid $12.9 billion in federal tax since the beginning of 2019.
That compares with $4.9 trillion in 2018, according to the same report.
The biggest chunk of that was paid by mining companies based in Nevada, Wyoming and California.
The report also showed that Nevada’s mining industry, which is still a large part of the state’s economy, is the only one in the country that doesn’t pay income taxes on its profits.
Nevada is also home to one of the most expensive lithium mines in the world, with prices at $2.3 billion, according the institute.
Some of the country’s biggest mining companies, like Murray Energy and the world’s largest coal company Peabody Energy, have asked for a tax break that could allow them to grow their operations and boost their tax revenues, according Tojo.
In his State of the State address, President Donald Trump promised to make tax breaks more generous, saying he would be putting in place a “pro-growth tax reform plan” that would “increase incentives for companies to invest in new facilities and to hire and grow their workforce.”
Murray Energy is already the largest coal mining company in the state, and has a contract with the state to mine lithium ore.
It plans to add up to 2 million tons of lithium over the next five years.
Peabys contract with Nevada’s Department of Mineral Resources to mine the ore, which will be used for lithium batteries.
The institute report shows that Nevada coal companies are responsible for over $1.7 billion in tax revenue for the state.
According to the report, the state collected $9.4 billion in revenue from coal mining in 2019.